Region 1’s economy accelerates by 8.4 percent

THE economy of Region I accelerated by 8.4 percent in 2016 from 5.4 percent in 2015. The faster performance of the region’s economy in 2016 was due to the accelerated growths in the Industry and Services sectors.

Services contributed the largest share in the region’s output in 2016 at 51.2 percent. The Industry, on the other hand, contributed 28.8 percent. Meanwhile, Agriculture, Hunting, Forestry and Fishing (AHFF) accounted for 20.1 percent in the region’s economic performance in 2016.

Services accelerated from 7.1 percent in 2015 to 8.0 percent in 2016 with the faster growths of all its sub-industries except Transportation, Storage and Communication (TSC). The biggest acceleration was registered by Public Administration and Compulsory Services (PAD) with a growth from 1.3 percent in 2015 to 6.3 percent in 2016. Financial Intermediation (FI) also grew at a faster rate from 5.8 percent in the previous year to 8.0 percent this year.

Likewise, Other Services (OS), Trade and Repair of Motor Vehicles and Real Estate, Renting and Business Activities (RERBA) posted higher growths at 11.2, 8.0, and 7.3 percent, respectively, while Transportation, Storage and Communication (TSC) grew on a slower rate from 6.9 percent in 2015 to 5.3 percent in 2016.

The performance of the Industry accelerated from 8.3 percent in 2015 to 17.9 percent in 2016 and it was attributed to the accelerated growth of Construction from 20.2 percent in 2015 to 43.4 percent in 2016. Mining and Quarrying (MAQ) and Electricity, Gas, and Water Supply (EGWS) also grew at a faster rate at 12.0 and 5.5 percent, respectively. Meanwhile, Manufacturing grew at a slower rate from 3.2 percent in 2015 to 2.6 percent in 2016.

On the other hand, AHFF further declined from 1.3 percent in 2015 to 1.8 percent in 2016 due to the contraction of Agriculture and Forestry from 0.4 percent in 2015 to negative 1.6 percent in 2016. Meanwhile, Fishing improved but still negative which recorded a decline of 7.6 percent in 2015 to 2.6 percent in 2016.